US Nonfarm Payroll Increases by 303,000 in March; Unemployment Declines to 3.8%

On Friday, the US Bureau of Labor Statistics (BLS) reported that total nonfarm payroll employment increased by 303,000 in March. This is well above the average monthly gain of 231,000 over the prior 12 months.

In March, job growth was once again widespread, with notable growth in the following:

• Health care added 72,000 jobs, above the average gain of 60,000 over the prior 12-month period.
• Government employment increased by 71,000, higher than the average monthly gain of 54,000 over the prior 12 months.
• Construction employment continued its upward trajectory, adding 39,000 jobs—about double the average monthly gain of 19,000 over the prior 12-month period.
• Leisure and hospitality added 49,000 jobs and has returned to its pre-pandemic level. Over the prior 12 months, job growth in the industry averaged 37,000 per month.
• Social assistance added 9,000 jobs, well below the average monthly gain of 22,000 over the prior 12 months.
• Retail trade employment changed little in March, adding 18,000 jobs. An increase in the general merchandising retail sector was partially offset by job losses in building materials and garden equipment/supplies dealers and in automotive parts, accessories, and tire retailers.

Employment showed little change over the month in other major industries including mining, quarrying, and oil and gas extraction; manufacturing; wholesale trade; transportation and warehousing; information; financial activities; and professional and business services.

The unemployment rate, at 3.8%, and the number of unemployed people, at 6.4 million, changed little in March. The unemployment rate has been in the narrow range of 3.7–3.9% since August 2023.

Revisions

The BLS notes that monthly revisions result from additional reports received from businesses and government agencies since the last published estimate and from recalculations of seasonal factors.

As a result, the change in total nonfarm payroll employment for January was revised upward by 27,000 to 256,000. The change for February was revised downward by 5,000 to 270,000. With these revisions, employment in January and February combined is 22,000 higher than previously reported.